Markets End Lower as Expiry Day Volatility Hits Sentiment

isha harvin
Jul 31
2 min read

Mumbai, July 25 – Indian stock markets failed to sustain early gains on Thursday, closing the day in the red as expiry-related volatility and profit-booking erased intraday recovery.

The Nifty 50 slipped 91 points to close at 24,735, while the Sensex ended 372 points lower at 81,158. Both indices started off on a positive note, supported by overnight strength in global markets, but lost momentum in the latter half of the session.

🔄 What Moved the Market

Thursday’s trade was largely influenced by the monthly expiry of F&O contracts, which typically brings high volatility. As traders squared off positions and rolled over to the next series, selling pressure increased—especially in large-cap stocks.

Sectors such as IT, oil & gas, and metals saw notable declines. Mid-session strength proved short-lived, with investors choosing to book profits ahead of key global and domestic triggers expected in the coming days.

🧠 Expert View

Market analysts said the fall was not entirely unexpected. “Expiry days tend to be tricky. Traders prefer to play it safe and avoid holding onto positions. With global cues still uncertain and FIIs pulling out funds, there’s caution across the board,” said one Mumbai-based equity strategist.

The Foreign Institutional Investors (FIIs) continued their selling streak, which has weighed on broader sentiment. Domestic institutions, however, remained net buyers, offering some stability.

📊 Sector Snapshot

IT stocks came under pressure, with names like TCS and Infosys dragging the index lower.
Energy and metal stocks also declined amid weak international commodity prices.
On the flip side, FMCG and auto stocks provided some support, with select names like Maruti Suzuki and Hindustan Unilever posting modest gains.

The broader market followed a similar trend, with both mid-cap and small-cap indices ending slightly lower.

🔍 Technical Check

According to market observers, 24,800 remains a key psychological level for Nifty. A sustained move below it could open the door for further downside toward 24,500.

“Technically, Nifty has slipped below short-term support, and momentum indicators suggest the possibility of further consolidation. However, buyers may step in near lower support zones if global sentiment doesn’t worsen,” said a technical analyst.

🌍 Global Factors at Play

Apart from domestic expiry pressures, investors are also eyeing:

Developments in U.S. and European markets
Inflation and interest rate cues
Crude oil movement
China’s economic data These external signals are likely to shape short-term market direction.

📝 What’s Ahead?

With July contracts now settled, traders are expected to shift focus to Q2 earnings, macro numbers, and global central bank commentary. Volatility may remain high, but opportunities in select sectors—particularly consumption and auto—could emerge if domestic demand remains strong.